The Germany international is out of contract at the Bernabeu at the end of the season and has confirmed he will seek a new challenge.

The 28-year-old has struggled to make an impression under Carlo Ancelotti and was left out of the side that lost 2-1 to Juventus in the Champions League semi-final first leg with centre-back Sergio Ramos being preferred in midfield.

Arsenal, Chelsea and Manchester United have all been linked with moves for the former Stuttgart player.

Starsport revealed last month that United had been offered the midfielder for £200,000-a-week.

SAM'S THE MAN: Schalke want to sign Sami Khedira [GETTY]

“It is true that we want Khedira for the coming season”

Horst Heldt

Khedira has also been heavily tipped with a return to Germany with Bayern Munich among his potential suitors along with Schalke.

And Schalke general manager Horst Heldt admits his club have made Khedira their top target although admits they face stiff competition for his signature.

"I would prefer us to conduct our business in private," Heldt told Goal.com.